Capitalism 2 and Capitalism Lab Forum

I am not sure if this is a bug or not but when I IPO'ed my Private Corporation the corporate networth went up a few times, which seems really weird.

Here is an example: That really doesn't feel right. Why would my value quadruple just from an IPO?

Savegame linked here:
https://file.io/XK3Y3XGSzytE

Market cap is total value of the companies stock. Per Google

Market capitalization can be affected by IPOs: When a company goes public through an initial public offering (IPO), it can have a significant impact on its market capitalization. For example, if a company issues a large number of shares during an IPO, its market capitalization could increase significantly

As for how much.. well that's up to David

I tried to download your savegame but it stated that the file is no longer available.

David wrote: Sat Jun 15, 2024 6:53 am I tried to download your savegame but it stated that the file is no longer available.

Please try this:
https://file.io/bDbGAHyYYCyH

--
This is different from the screenshot above as I don't have that original game anymore, instead the networth was increased to 10 billion (about to win the game). But if you do the IPO the networth goes to 25 billion instantly.

Before the IPO, your company's market cap was based on its net worth (or equity https://learn.marsdd.com/article/shareh ... definition).

After the IPO, it is based on its stock price x the number of shares.

The fact that the IPO gives your stock price a P/B of over 2.0 (https://www.investopedia.com/terms/p/pr ... kratio.asp) is the main driver of the increased company valuation.

Ah, that makes more sense. Seems like an interesting way to boost the company's networth to meet an objective.